Date: 30 October 2009
Thought for the day
“A mind that is stretched by a new experience can never go back to its old dimensions.”
–Oliver Wendell Holmes
1)India is ready to discuss all issues with Pakistan if an atmosphere that is fruitful for negotiations is created, Prime Minister Manmohan Singh said in Srinagar on Thursday. At a press conference, he said there was no precondition for talks, but they cannot make headway unless there was “effective control” of the terror groups operating in that country.
2)The economic recovery in Asia is faster than the rest of the world and is projected to grow by 5.75% during 2010, says the International Monetary Fund(IMF). “The region (Asia) is out pacing other parts of the world, with the “green shoots” of recovery appearing earlier and taking firmer roots than elsewhere,” the IMF said in its regional economic outlook on Thursday.
3)Inflation rose fastest in six months to 1.51% for the week ended October 17 from 1.21% in the previous week. The wholesale price index-based inflation rose despite a high base year inflation rate of 10.82% during the same week last year. Analysts expect it to touch 7% by March 2010.
CORPORATE / INDUSTRY
4)RAMKY Enviro Engineers, an arm of the Rs 2,500-crore Ramky group, has acquired Singapore-based Cleantech for Rs 100 crore. The acquisition is expected to help the environmental engineering firm ramp up business in Singapore and South East Asia markets.
MONEY & BANKING
5)The rupee bounced back from near one-month lows on Thursday, as sentiment was buyoyed by dollar sales from exporters booking pro fits. The rupee closed at 47.21 against dollar, off a low of 47.63 seen in early deals and 0.3% stronger than its previous close of 47.34. The rupee came under pressure earlier on the day owing to the customary month-end dollar demand from refiners.
6)Weighed down by higher provisioning, two public sectors lenders – Bank of India(BoI) and Indian Overseas Bank(IOB) – today posted a drop of over 50 per cent in their net profits for the second quarter ended September 2009. While Punjab National Bank(PNB), Corporation Bank and Vijaya Bank posted a rise in net profit on growth in earnings from interest and fee-income.
7)The Reserve Bank of India(RBI) has approved United Bank of India’s (UBI’s) initial public offering(IPO), which will reduce the government stake in the bank by 16 per cent. The bank would file the offer document for the same by November-end and the issue is likely to hit the market by January, said S C Gupta, chairman and managing director, UBI.
8)THE DBS Group, South East Asia’s largest bank, is set to kick off its retail banking operations in India. However, unlike other foreign banks, which sought to develop their retail base by growing their loan books, DBS will first focus on building its deposits. DBS currently has 10 branches in the country and has applied for more branches.
9)The BSE Sensex dived 230 points on Thursday as foreign institutional investors continued their selling amid negative global cues and rising inflation concerns. The benchmark index closed at 16,052.70. The broader Nifty closed 1.5 per cent down, at 4,750.55. The Sensex touched an intra-day high of 16,264, but quickly dropped to a low of 15,993.8. FIIs were net sellers on Thursday for Rs 2,546.6 crore, while domestic institutions were net buyers for Rs 977 crore. Retail investors seem to have taken advantage of the situation and bought equity worth Rs 113 crore(on BSE) in the net.
10)In spite of miserable post-listing performance for most initial public offers(IPOs) this year, Thinksoft Global, which got listed on Monday, has surged 120 per cent from its listing price on the Bombay Stock Exchange(BSE). Analysts say the stock has been continously rising since the listing day on the back of extreme speculation.
11)Securities and Exchange Board of India(Sebi) is likely to issue norms on separate stock exchange for small and medium enterprises next month to give them more options to raise funds. At present, around 90% of the 2.61 crore micro, small and medium enterprises depend on either banks or informal sources to finance their business.
IPO / FPO
12)The Centre approved Rural Electrification Corporation’s proposal for a follow-on-public offer(FPO) on Thursday. The issue will constitute 20 per cent of the existing paid-up capital of the company fresh equity of 15 per cent and disinvestment of 5 per cent.
13)Exploration & production major Oil & Natural Gas Corporation’s net profit increased 6% to Rs 5,089.64 crore in the second quarter ended September 30, compared with Rs 4,808.41 crore in the cor- responding period of the previous year. This is ONGC’s first rise in five quarters thanks to an easing of its subsidy-sharing burden.
14)Mahindra & Mahindra(M&M) has posted its highest-ever quarterly profit for the quarter ending September 30,2009. The net profit of the company (standalone) surged 185% to Rs 703 crore compared to Rs 247 crore in the same period last year, beating expectations.
15)Cairn India Ltd has reported a 60 per cent rise in its profit(consolidated) for the second quarter of the current fiscal. This is after two straight quarters of decline. The company reported a profit of Rs 469.5 crore compared with Rs 293.3 crore for the cor- responding quarter of the previous year.
16)Reliance Industries has posted a profit of Rs 3,852 crore for the second quarter ended September 30, a fall of 6.4 per cent from Rs 4,116 crore in the corresponding period last year. For the half- year period, profits were down 8.5 per cent to Rs 7,518 crore(Rs 8,220 crore).
17)Gold prices rose back above $1,030 an ounce in Europe on Thurs- day as the dollar gave up gains against the euro ahead of key US economic growth data due later in the session. Spot gold was bid at $1,034.65 an ounce at 1014 GMT, against $1,026.85 late in New York on Wednesday. Earlier, it touched a three-week low of $1,025.75 an ounce.
BUSINESS PROCESS OUTSOURCING
18)Since selling its captive technology unit to Wipro Technologies last December, Citigroup has expanded its engagement with the Indian vendor by also offering business process outsourcing contracts.
19)WITH the US economy, the biggest market for India’s over $50 bil- lion outsourcing industry, showing signs of an economic recovery, top honchos at Infosys, Wipro and HCL said their optimism has proven right. The financial results of the country’s top-three software exporters have already shown signs of recovery earlier this month. India’s software exports industry derives more than half of its revenue from the US.
20)MULTINATIONAL outsourcing firms IBM and HP have been shortlisted for around $700 million contract for managing Microsoft’s global network of desktops, servers and other IT infrastructure, as the world’s biggest software maker seeks to lower its operational costs and focus better on its core business.
21)HCL Infosystems on Thursday said it expects corporate spending on computer systems and other related IT products and services to accelerate early next year as the economy has started showing signs of recovery. The company sees large deals flowing in from the banking & financial services, telecom and power sectors in the system integration space in the next 3-4 months.
22)THE US economy grew in the third quarter for the first time in more than a year, propelled by stimulus-driven gains in consumer spending and home building. The world’s largest economy expanded at a 3.5% pace from July through September, exceeding the median estimate of economists surveyed by Bloomberg News, after shrinking the previous four quarters, figures from the commerce department showed in Washington on Thursday. Household purchases climbed 3.4%, the most in more than two years.
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